Q2 revenue growth of 30% year-over-year,
record Q2 operating profit
Subscription services ARR $955 million, up 31% year-over-year
Raised FY23 revenue outlook to $2.75 billion
MOUNTAIN
VIEW, Calif., Aug. 31,
2022 /PRNewswire/ -- Today Pure Storage (NYSE: PSTG),
the IT pioneer that delivers the world's most advanced data storage
technology and services, announced financial results for its fiscal
second quarter ended August 7,
2022.
"Pure saw continued growth and solid market share gains as our
expanding portfolio of industry leading products and services are
recognized and embraced by more and more enterprises around the
world," said Charles Giancarlo,
Chairman and CEO, Pure Storage. "Customers struggling with their
ability to manage their exploding volumes of data look to Pure for
simple, automated solutions."
Second Quarter Financial Highlights
- Revenue $646.8 million, up 30%
year-over-year
- Subscription services revenue $232.2
million, up 35% year-over-year
- Subscription Annual Recurring Revenue (ARR) $955.3 million, up 31% year-over-year
- Remaining Performance Obligations (RPO) $1.5 billion, up 25% year-over-year
- GAAP gross margin 68.6%; non-GAAP gross margin 70.4%
- GAAP operating income $14.4
million; non-GAAP operating income $106.0 million
- GAAP operating margin 2.2%; non-GAAP operating margin
16.4%
- Operating cash flow $159.4
million; free cash flow $134.2
million
- Total cash, cash equivalents, and marketable securities
$1.4 billion
- Returned approximately $61
million in Q2 to stockholders, repurchased 2.4 million
shares
"We are pleased to again deliver strong revenue growth and
profitability in Q2," said Kevan
Krysler, CFO, Pure Storage. "We are helping our customers
navigate a dynamic and challenging environment as we continue our
track record of delivering highly performant solutions within our
normal lead times, requiring less energy and space than other data
storage alternatives."
Second Quarter Company Highlights
- Market-Leading Portfolio Innovation: Pure introduced the
new FlashBlade//S family of products, built with a modular
architecture that shares components with Pure's industry leading
FlashArray. The highly flexible, all-QLC system combines
performance and cost effectiveness to address the demands of
unstructured data and modern application growth. Pure also
delivered AIRI//S, the next generation of its complete AI-ready
infrastructure developed with NVIDIA.
- Expanded Storage Flexibility and as-a-Service Offerings:
Pure advanced its portfolio of Evergreen offerings, including the
new fleet-level Evergreen//Flex, extending leadership in
Storage-as-a-Service (STaaS) while supporting customers where they
are in their journey to embracing flexible delivery models.
- General Availability of Pure Fusion: Pure Fusion enables
enterprises and MSPs to automate and orchestrate their data storage
environment and offer storage services to customers and developers
through APIs, dramatically accelerating developer workflow.
- Kubernetes Leadership Recognition: Portworx was named a
leader and outperformer in the GigaOm Radar Reports for Enterprise
Kubernetes Storage and Cloud-Native Kubernetes Data Storage for the
third consecutive year. Additionally, in Q2, Portworx Data Services
(PDS) became generally available and the company introduced
portfolio advancements to its suite of Portworx offerings.
Third Quarter and FY23 Guidance
|
Q3
FY23
|
FY23
|
Revenue
|
Approx. $670
Million
|
Approx. $2.75
Billion
|
Non-GAAP Operating
Income
|
$85 Million
|
$390 Million
|
Non-GAAP Operating
Margin
|
Approx.
12.7%
|
Approx. 14%
|
These statements are forward-looking and actual results may
differ materially. Refer to the Forward Looking Statements section
below for information on the factors that could cause our actual
results to differ materially from these statements. Pure has not
reconciled its guidance for non-GAAP operating income and non-GAAP
operating margin to their most directly comparable GAAP measures
because certain items that impact these measures are not within
Pure's control and/or cannot be reasonably predicted. Accordingly,
a reconciliation of these non-GAAP financial measures guidance to
the corresponding GAAP measures is not available without
unreasonable effort.
Conference Call Information
Pure will host a teleconference to discuss the second quarter
fiscal 2023 results at 1:30 pm PT
today, August 31, 2022. A live audio broadcast of the
conference call will be available at the Pure Storage Investor
Relations website, investor.purestorage.com. Pure will also post
its earnings presentation to this website in advance of the call
and post its prepared remarks to this website within 24 hours
following completion of the call.
A replay will be available following the call on the Pure
Storage Investor Relations website or for two weeks at
1-866-813-9403 (or +44 204 525 0658 for international callers) with
passcode 367923.
Upcoming Events
Pure is scheduled to participate at the following investor
conferences:
Deutsche Bank's 2022 Technology Conference
Date:
Thursday, September 1, 2022
Fireside Chat Time: 1:15 pm PDT
Pure Presenters: Ajay Singh, Chief
Product Officer and Sanjot Khurana, VP, Investor Relations &
Treasurer
Evercore ISI 2nd Annual TMT Conference
Date:
Wednesday, September 7, 2022
Pure Participant: Sanjot Khurana, VP, Investor Relations &
Treasurer
Citi's 2022 Global Technology Conference
Date:
Thursday, September 8, 2022
Pure Participant: Sanjot Khurana, VP, Investor Relations &
Treasurer
Goldman Sachs Communacopia + Technology
Conference
Date: Monday, September
12, 2022
Fireside Chat Time: 4:30 pm - 5:10 pm
PDT
Pure Presenters: Charles Giancarlo,
Chairman and CEO and Kevan Krysler,
CFO
Pure Participants: Sanjot Khurana, VP, Investor Relations &
Treasurer
The presentation(s) will be webcast live and archived on Pure's
Investor Relations website at investor.purestorage.com.
----
About Pure Storage
Pure Storage (NYSE: PSTG) uncomplicates data storage, forever.
Pure delivers a cloud experience that empowers every organization
to get the most from their data while reducing the complexity and
expense of managing the infrastructure behind it. Pure's commitment
to providing true storage as-a-service gives customers the agility
to meet changing data needs at speed and scale, whether they are
deploying traditional workloads, modern applications, containers,
or more. Pure believes it can make a significant impact in reducing
data center emissions worldwide through its environmental
sustainability efforts, including designing products and solutions
that enable customers to reduce their carbon and energy footprint.
And with a certified customer satisfaction score in the top one
percent of B2B companies, Pure's ever-expanding list of customers
are among the happiest in the world. For more information, visit
www.purestorage.com.
Analyst Recognition
Leader in the 2021 Gartner Magic Quadrant for Primary Storage
Arrays
Leader in the 2021 Gartner Magic Quadrant for Distributed File
Systems & Object Storage
Connect with Pure
Blog
LinkedIn
Twitter
Facebook
Pure Storage, the Pure P Logo, Portworx, and the marks on the
Pure Trademark List at
www.purestorage.com/legal/productenduserinfo.html are
trademarks of Pure Storage, Inc. Other names are trademarks of
their respective owners.
Forward Looking Statements
This press release contains forward-looking statements regarding
our products, business and operations, including but not limited to
our views relating to future period financial results, our
sustainable growth strategy, our continued momentum and growth
potential, particularly within our enterprise customer segment, our
sustainability goals and benefits, the timing and magnitude of
large customer orders, the potential for supply chain disruptions,
the scope and duration of the COVID-19 pandemic and its impact on
our business operations, liquidity and capital resources,
employees, customers, inflation, financial results and the economy,
demand for our products and subscription services, including
Evergreen//One, our expectations regarding our product and
technology differentiation, new customer acquisition, the continued
success of the Portworx technology, and other statements regarding
our products, business, operations and results. Forward-looking
statements are subject to known and unknown risks and uncertainties
and are based on potentially inaccurate assumptions that could
cause actual results to differ materially from those expected or
implied by the forward-looking statements.
Actual results may differ materially from the results predicted,
and reported results should not be considered as an indication of
future performance. The potential risks and uncertainties that
could cause actual results to differ from the results predicted
include, among others, those risks and uncertainties included under
the caption "Risk Factors" and elsewhere in our filings and reports
with the U.S. Securities and Exchange Commission, which are
available on our Investor Relations website at
investor.purestorage.com and on the SEC website at www.sec.gov.
Additional information is also set forth in our Annual Report on
Form 10-K for the year ended February 6, 2022. All information
provided in this release and in the attachments is as of
August 31, 2022, and Pure undertakes no duty to update this
information unless required by law.
Key Business Metric
Subscription ARR is a key business metric that refers to total
annualized contract value of all active subscription agreements on
the last day of the quarter, plus on-demand revenue for the quarter
multiplied by four.
Non-GAAP Financial Measures
To supplement our unaudited condensed consolidated financial
statements, which are prepared and presented in accordance with
GAAP, Pure uses the following non-GAAP financial measures: non-GAAP
gross profit, non-GAAP gross margin, non-GAAP operating income
(loss), non-GAAP operating margin, non-GAAP net income (loss),
non-GAAP net income (loss) per share, and free cash flow.
We use these non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate
period-to-period comparisons. Our management believes that these
non-GAAP financial measures provide meaningful supplemental
information regarding our performance and liquidity by excluding
certain expenses and expenditures such as stock-based compensation
expense, payments to former shareholders of acquired companies,
payroll tax expense related to stock-based activities, amortization
of debt discount and debt issuance costs related to long-term debt,
amortization of intangible assets acquired from acquisitions,
acquisition-related transaction and integration expenses, and costs
associated with the exit of certain operations that may not be
indicative of our ongoing core business operating results. Pure
believes that both management and investors benefit from referring
to these non-GAAP financial measures in assessing our performance
and when analyzing historical performance and liquidity and
planning, forecasting, and analyzing future periods. The
presentation of these non-GAAP financial measures is not meant to
be considered in isolation or as a substitute for our financial
results prepared in accordance with GAAP, and our non-GAAP measures
may be different from non-GAAP measures used by other
companies.
For a reconciliation of these non-GAAP financial measures to
GAAP measures, please see the tables captioned "Reconciliations of
non-GAAP results of operations to the nearest comparable GAAP
measures" and "Reconciliation from net cash provided by operating
activities to free cash flow," included at the end of this
release.
PURE STORAGE,
INC.
Condensed
Consolidated Balance Sheets
(in thousands,
unaudited)
|
|
|
At the End
of
|
|
|
Second Quarter of
Fiscal 2023
|
|
Fiscal
2022
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
652,567
|
|
$
466,199
|
Marketable
securities
|
|
709,889
|
|
947,073
|
Accounts receivable,
net of allowance of $1,077 and $945
|
|
402,007
|
|
542,144
|
Inventory
|
|
52,265
|
|
38,942
|
Deferred commissions,
current
|
|
70,918
|
|
81,589
|
Prepaid expenses and
other current assets
|
|
133,360
|
|
116,232
|
Total current
assets
|
|
2,021,006
|
|
2,192,179
|
Property and equipment,
net
|
|
219,559
|
|
195,282
|
Operating lease
right-of-use-assets
|
|
172,392
|
|
111,763
|
Deferred commissions,
non-current
|
|
164,763
|
|
164,718
|
Intangible assets,
net
|
|
57,537
|
|
62,646
|
Goodwill
|
|
361,427
|
|
358,736
|
Restricted
cash
|
|
10,544
|
|
10,544
|
Other assets,
non-current
|
|
42,631
|
|
39,447
|
Total
assets
|
|
$
3,049,859
|
|
$
3,135,315
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
64,005
|
|
$
70,704
|
Accrued compensation
and benefits
|
|
150,924
|
|
205,431
|
Accrued expenses and
other liabilities
|
|
93,752
|
|
78,511
|
Operating lease
liabilities, current
|
|
33,872
|
|
35,098
|
Deferred revenue,
current
|
|
609,549
|
|
562,576
|
Debt,
current
|
|
573,205
|
|
—
|
Total current
liabilities
|
|
1,525,307
|
|
952,320
|
Long-term
debt
|
|
—
|
|
786,779
|
Operating lease
liabilities, non-current
|
|
150,711
|
|
93,479
|
Deferred revenue,
non-current
|
|
569,142
|
|
517,296
|
Other liabilities,
non-current
|
|
43,341
|
|
31,105
|
Total
liabilities
|
|
2,288,501
|
|
2,380,979
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
2,392,203
|
|
2,470,972
|
Accumulated other
comprehensive loss
|
|
(20,099)
|
|
(8,365)
|
Accumulated
deficit
|
|
(1,610,746)
|
|
(1,708,271)
|
Total stockholders'
equity
|
|
761,358
|
|
754,336
|
Total liabilities and
stockholders' equity
|
|
$
3,049,859
|
|
$
3,135,315
|
PURE STORAGE,
INC.
Condensed
Consolidated Statements of Operations
(in thousands,
except per share data, unaudited)
|
|
|
Second Quarter of
Fiscal
|
|
First Two
Quarters of Fiscal
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Product
|
$
414,603
|
|
$
324,935
|
|
$
815,764
|
|
$
574,823
|
Subscription
services
|
232,169
|
|
171,896
|
|
451,413
|
|
334,715
|
Total
revenue
|
646,772
|
|
496,831
|
|
1,267,177
|
|
909,538
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Product
(1)
|
134,292
|
|
101,150
|
|
259,776
|
|
180,214
|
Subscription
services(1)
|
68,912
|
|
55,654
|
|
137,407
|
|
107,431
|
Total cost of
revenue
|
203,204
|
|
156,804
|
|
397,183
|
|
287,645
|
Gross profit
|
443,568
|
|
340,027
|
|
869,994
|
|
621,893
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development (1)
|
165,690
|
|
140,107
|
|
326,963
|
|
271,488
|
Sales and marketing
(1)
|
206,836
|
|
190,386
|
|
424,989
|
|
373,882
|
General and
administrative (1)
|
56,679
|
|
43,464
|
|
108,246
|
|
86,610
|
Total operating
expenses
|
429,205
|
|
373,957
|
|
860,198
|
|
731,980
|
Income (loss) from
operations
|
14,363
|
|
(33,930)
|
|
9,796
|
|
(110,087)
|
Other income (expense),
net
|
585
|
|
(7,410)
|
|
(5,596)
|
|
(12,137)
|
Income (loss) before
provision for income taxes
|
14,948
|
|
(41,340)
|
|
4,200
|
|
(122,224)
|
Income tax
provision
|
4,026
|
|
3,925
|
|
4,813
|
|
7,247
|
Net income
(loss)
|
$
10,922
|
|
$
(45,265)
|
|
$
(613)
|
|
$
(129,471)
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to common stockholders, basic
|
$
0.04
|
|
$
(0.16)
|
|
$
(0.00)
|
|
$
(0.46)
|
Net income (loss) per
share attributable to common stockholders, diluted
|
$
0.03
|
|
$
(0.16)
|
|
$
(0.00)
|
|
$
(0.46)
|
Weighted-average shares
used in computing net income (loss) per share
attributable to common stockholders, basic
|
297,475
|
|
283,931
|
|
296,659
|
|
282,147
|
Weighted-average shares
used in computing net income (loss) per share
attributable to common stockholders, diluted
|
312,720
|
|
283,931
|
|
296,659
|
|
282,147
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
Cost of revenue --
product
|
$
2,607
|
|
$
1,566
|
|
$
4,470
|
|
$
2,913
|
Cost of revenue --
subscription services
|
5,808
|
|
5,137
|
|
11,164
|
|
9,543
|
Research and
development
|
41,575
|
|
35,125
|
|
78,092
|
|
65,546
|
Sales and
marketing
|
17,954
|
|
18,358
|
|
36,299
|
|
35,166
|
General and
administrative
|
15,620
|
|
10,243
|
|
28,110
|
|
18,595
|
Total stock-based
compensation expense
|
$
83,564
|
|
$
70,429
|
|
$
158,135
|
|
$
131,763
|
PURE STORAGE,
INC.
Condensed
Consolidated Statements of Cash Flows
(in thousands,
unaudited)
|
|
|
Second Quarter of
Fiscal
|
|
First Two
Quarters of Fiscal
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
10,922
|
|
$
(45,265)
|
|
$
(613)
|
|
$
(129,471)
|
Adjustments to
reconcile net income (loss) to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
23,886
|
|
19,273
|
|
46,549
|
|
38,099
|
Amortization of debt
discount and debt issuance costs
|
802
|
|
7,751
|
|
1,603
|
|
15,154
|
Stock-based
compensation expense
|
83,564
|
|
70,429
|
|
158,135
|
|
131,763
|
Other
|
1,282
|
|
3,895
|
|
1,428
|
|
6,516
|
Changes in operating
assets and liabilities, net of effect of acquisition:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(56,122)
|
|
(30,874)
|
|
140,007
|
|
102,506
|
Inventory
|
(10,793)
|
|
266
|
|
(12,492)
|
|
(3,242)
|
Deferred
commissions
|
(4,683)
|
|
(10,090)
|
|
10,626
|
|
(8,041)
|
Prepaid expenses and
other assets
|
(3,821)
|
|
5,452
|
|
(15,563)
|
|
(24,955)
|
Operating lease
right-of-use assets
|
9,071
|
|
7,237
|
|
16,820
|
|
14,818
|
Accounts
payable
|
890
|
|
15,087
|
|
(6,529)
|
|
(9,267)
|
Accrued compensation
and other liabilities
|
51,139
|
|
43,885
|
|
(37,824)
|
|
(40,952)
|
Operating lease
liabilities
|
(12,962)
|
|
(7,308)
|
|
(21,442)
|
|
(14,205)
|
Deferred
revenue
|
66,205
|
|
43,654
|
|
98,807
|
|
66,117
|
Net cash provided by
operating activities
|
159,380
|
|
123,392
|
|
379,512
|
|
144,840
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchases of property
and equipment(1)
|
(25,184)
|
|
(27,670)
|
|
(57,994)
|
|
(55,499)
|
Acquisition, net of
cash acquired
|
(1,989)
|
|
—
|
|
(1,989)
|
|
—
|
Purchases of
marketable securities
|
—
|
|
(145,808)
|
|
(17,251)
|
|
(317,371)
|
Sales of marketable
securities
|
—
|
|
28,501
|
|
—
|
|
114,038
|
Maturities of
marketable securities
|
124,818
|
|
104,030
|
|
240,993
|
|
169,770
|
Net cash provided by
(used in) investing activities
|
97,645
|
|
(40,947)
|
|
163,759
|
|
(89,062)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Net proceeds from
exercise of stock options
|
3,859
|
|
3,147
|
|
15,264
|
|
11,163
|
Proceeds from issuance
of common stock under employee stock purchase plan
|
—
|
|
—
|
|
19,396
|
|
17,726
|
Principal payments on
borrowings and finance lease obligations
|
(182)
|
|
(261)
|
|
(251,577)
|
|
(605)
|
Tax withholding on
vesting of equity awards
|
(2,793)
|
|
(1,514)
|
|
(12,987)
|
|
(6,564)
|
Repurchases of common
stock
|
(60,579)
|
|
(44,373)
|
|
(126,999)
|
|
(74,393)
|
Net cash used in
financing activities
|
(59,695)
|
|
(43,001)
|
|
(356,903)
|
|
(52,673)
|
Net increase in cash,
cash equivalents and restricted cash
|
197,330
|
|
39,444
|
|
186,368
|
|
3,105
|
Cash, cash equivalents
and restricted cash, beginning of period
|
465,781
|
|
311,352
|
|
476,743
|
|
347,691
|
Cash, cash equivalents
and restricted cash, end of period
|
$
663,111
|
|
$
350,796
|
|
$
663,111
|
|
$
350,796
|
|
|
(1)
|
Includes capitalized
internal-use software costs of $3.9 million and $2.5 million for
the second quarter of fiscal 2023 and 2022 and $6.8 million and
$3.8 million for the first two quarters of fiscal 2023 and
2022.
|
Reconciliations of non-GAAP results of operations to the
nearest comparable GAAP measures
The following table presents non-GAAP gross margins by revenue
source before certain items (in thousands except percentages,
unaudited):
|
|
Second Quarter of Fiscal
2023
|
|
Second Quarter of Fiscal
2022
|
|
|
GAAP
results
|
|
GAAP
gross
margin (a)
|
|
Adjustment
|
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
gross
margin (b)
|
|
GAAP
results
|
|
GAAP
gross
margin (a)
|
|
Adjustment
|
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
gross
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 2,607
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 1,566
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
64
|
|
(d)
|
|
|
|
|
|
|
|
|
|
63
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
3,252
|
|
(e)
|
|
|
|
|
|
|
|
|
|
3,067
|
|
(e)
|
|
|
|
|
Gross profit
--product
|
|
$
280,311
|
|
67.6 %
|
|
$ 5,923
|
|
|
|
$ 286,234
|
|
69.0 %
|
|
$
223,785
|
|
68.9 %
|
|
$ 4,696
|
|
|
|
$
228,481
|
|
70.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 5,808
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 5,137
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
265
|
|
(d)
|
|
|
|
|
|
|
|
|
|
196
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
24
|
|
(f)
|
|
|
|
|
|
|
|
|
|
24
|
|
(f)
|
|
|
|
|
Gross profit --
subscription services
|
|
$
163,257
|
|
70.3 %
|
|
$ 6,097
|
|
|
|
$ 169,354
|
|
72.9 %
|
|
$
116,242
|
|
67.6 %
|
|
$ 5,357
|
|
|
|
$
121,599
|
|
70.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 8,415
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 6,703
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
329
|
|
(d)
|
|
|
|
|
|
|
|
|
|
259
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
3,252
|
|
(e)
|
|
|
|
|
|
|
|
|
|
3,067
|
|
(e)
|
|
|
|
|
|
|
|
|
|
|
24
|
|
(f)
|
|
|
|
|
|
|
|
|
|
24
|
|
(f)
|
|
|
|
|
Total gross
profit
|
|
$
443,568
|
|
68.6 %
|
|
$
12,020
|
|
|
|
$ 455,588
|
|
70.4 %
|
|
$
340,027
|
|
68.4 %
|
|
$
10,053
|
|
|
|
$
350,080
|
|
70.5 %
|
|
|
(a)
|
GAAP gross margin is
defined as GAAP gross profit divided by revenue.
|
(b)
|
Non-GAAP gross margin
is defined as non-GAAP gross profit divided by revenue.
|
(c)
|
To eliminate
stock-based compensation expense.
|
(d)
|
To eliminate payroll
tax expense related to stock-based activities.
|
(e)
|
To eliminate
amortization expense of acquired intangible assets.
|
(f)
|
To eliminate payments
to former shareholders of acquired company.
|
The following table presents certain non-GAAP consolidated
results before certain items (in thousands, except per share
amounts and percentages, unaudited):
|
Second Quarter of Fiscal
2023
|
|
Second Quarter of Fiscal
2022
|
|
GAAP
results
|
|
GAAP
operating
margin (a)
|
|
Adjustment
|
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
operating
margin (b)
|
|
GAAP
results
|
|
GAAP
operating
margin (a)
|
|
Adjustment
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
operating
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 83,564
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 70,429
|
|
(c)
|
|
|
|
|
|
|
|
|
1,780
|
|
(d)
|
|
|
|
|
|
|
|
|
|
4,229
|
|
(d)
|
|
|
|
|
|
|
|
|
2,518
|
|
(e)
|
|
|
|
|
|
|
|
|
|
2,081
|
|
(e)
|
|
|
|
|
|
|
|
|
3,785
|
|
(f)
|
|
|
|
|
|
|
|
|
|
3,600
|
|
(f)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
171
|
|
(g)
|
|
|
|
Operating Income
(loss)
|
$
14,363
|
|
2.2 %
|
|
$ 91,647
|
|
|
|
$
106,010
|
|
16.4 %
|
|
$
(33,930)
|
|
-6.8 %
|
|
$ 80,510
|
|
|
$
46,580
|
|
9.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 83,564
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 70,429
|
|
(c)
|
|
|
|
|
|
|
|
|
1,780
|
|
(d)
|
|
|
|
|
|
|
|
|
|
4,229
|
|
(d)
|
|
|
|
|
|
|
|
|
2,518
|
|
(e)
|
|
|
|
|
|
|
|
|
|
2,081
|
|
(e)
|
|
|
|
|
|
|
|
|
3,785
|
|
(f)
|
|
|
|
|
|
|
|
|
|
3,600
|
|
(f)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
171
|
|
(g)
|
|
|
|
|
|
|
|
|
802
|
|
(h)
|
|
|
|
|
|
|
|
|
|
7,751
|
|
(h)
|
|
|
|
|
|
|
|
|
(1,767)
|
|
(i)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
Net income
(loss)
|
$
10,922
|
|
|
|
$ 90,682
|
|
|
|
$
101,604
|
|
|
|
$
(45,265)
|
|
|
|
$ 88,261
|
|
|
$
42,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per
share -- diluted
|
$ 0.03
|
|
|
|
|
|
|
|
$ 0.32
|
|
|
|
$
(0.16)
|
|
|
|
|
|
|
$ 0.14
|
|
|
Weighted-average
shares used in per
share calculation --
diluted
|
312,720
|
|
|
|
—
|
|
|
|
312,720
|
|
|
|
283,931
|
|
|
|
16,286
|
|
(j)
|
300,217
|
|
|
|
|
(a)
|
GAAP operating margin
is defined as GAAP operating income (loss) divided by
revenue.
|
(b)
|
Non-GAAP operating
margin is defined as non-GAAP operating income divided by
revenue.
|
(c)
|
To eliminate
stock-based compensation expense.
|
(d)
|
To eliminate payments
to former shareholders of acquired company.
|
(e)
|
To eliminate payroll
tax expense related to stock-based activities.
|
(f)
|
To eliminate
amortization expense of acquired intangible assets.
|
(g)
|
To eliminate
acquisition-related transaction and integration
expenses.
|
(h)
|
To eliminate
amortization expense of debt discount and debt issuance costs
related to our long-term debt.
|
(i)
|
To eliminate net gain
from legal settlements in connection with facilities abandoned in
the second quarter of fiscal 2021.
|
(j)
|
To include effect of
dilutive securities (employee stock options, restricted stock, and
shares from employee stock purchase plan).
|
Reconciliation from net cash provided by operating activities
to free cash flow (in thousands except percentages,
unaudited):
|
Second Quarter of
Fiscal
|
|
2023
|
|
2022
|
Net cash provided by
operating activities
|
$
159,380
|
|
$
123,392
|
Less: purchases of
property and equipment(1)
|
(25,184)
|
|
(27,670)
|
Free cash flow
(non-GAAP)
|
$
134,196
|
|
$
95,722
|
|
|
(1)
|
Includes capitalized
internal-use software costs of $3.9 million and $2.5 million for
the second quarter of fiscal 2023 and 2022.
|
View original content to download
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SOURCE Pure Storage